Coupon Bond
/ˈkuːpɒn bɒnd/
Definitions
- (n.) A bond that pays interest at specific intervals, each payment represented by a detachable coupon.
The investor collected coupons from the coupon bond every six months.
Forms
- coupon bond
- coupon bonds
Related terms
See also
Commentary
Coupon bonds are distinct from zero-coupon bonds by their periodic interest payments, which facilitates cash flow management for bondholders.
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